McDermott International Ltd has secured an offshore transportation, installation and commissioning contract from PTTEP Sabah Oil Limited for the Kikeh subsea gas lift project, located 75 miles (120 kilometers) northwest of the island of Labuan, offshore Sabah in East Malaysia.
McDermott described the contract as “sizeable”, which it defined as being between $1 million and $50 million, the company said in a recent news release.
Under the scope of the contract, McDermott will remove the existing flexible gas lift riser and perform the installation and commissioning of a new dynamic riser section and flowline comprised of two thermoplastic composite pipe jumpers. The company said this would enable gas delivery to a subsea production system tied back to the Kikeh floating production, storage and offloading (FPSO) vessel.
Project management and engineering will be executed from Kuala Lumpur, Malaysia, the company added.
"McDermott is uniquely positioned to deliver this project, having performed the installation of subsea infrastructure in the Kikeh field between 2011 and 2012, and again in 2014, in the nearby Siakap North-Petai field," Mahesh Swaminathan, McDermott's Senior Vice President for Subsea and Floating Facilities, said. "We pioneered reel-lay installation for pipe-in-pipe production and water injection flowlines in the region, underscoring our commitment to engineering innovation. Returning to the Kikeh field not only reaffirms our expertise, but also presents another opportunity to deliver exceptional results through our unmatched experience in offshore transportation, subsea installations, and commissioning”.
Operated by PTTEP on behalf of its partners Petronas Carigali and PT Pertamina Malaysia Exploration Production, the Kikeh field has been producing from the existing Kikeh FPSO since 2007. The Kikeh FPSO is the first and largest deepwater FPSO in Malaysia, according to the release.
2 EPCIC Contracts with NOC
Meanwhile, McDermott was awarded two contracts from North Oil Company (NOC) to deliver engineering, procurement, construction, installation and commissioning (EPCIC) for packages 11 and 13 of the Ruya Development Project, as part of the expansion of the Al-Shaheen field, Qatar's largest oil field.
The Package 11 contract scope, awarded to a consortium of McDermott and Qingdao McDermott Wuchuan (QMW), includes installation of nine satellite wellhead platforms and jackets in two offshore campaigns. The contract was for over $1.5 billion, McDermott noted in an earlier release.
The Package 13 contract, awarded to a consortium of McDermott and Hyundai Heavy Industry (HHI), is for an EPCIC contract of one 25,000 metric ton central processing platform, flare platform and bridges. According to McDermott, the contract value was between $500 million and $750 million.
"These awards build on our successful execution of the front-end engineering design (FEED) project—one of the largest FEEDs in McDermott's 100-year history—completed in just over 12 months," Mike Sutherland, McDermott's Senior Vice President for Offshore Middle East, said. "We will continue to earn the confidence of QatarEnergy and TotalEnergies by delivering strategically significant energy infrastructure projects in the Middle East”.
"We have been on this journey with NOC since our Doha operating center started the pre-FEED in 2021," Neil Gunnion, Qatar Country Manager and Vice President for Operations, said. "This team of experts will now lead the execution of EPCIC work, leveraging their robust experience and in-depth knowledge of Qatar's offshore sector for the successful expansion of the Al-Shaheen field”.
Completion of Ichthys Installation with Baker Hughes
Earlier in the year, McDermott and Baker Hughes announced the safe completion of the installation of subsea infrastructure at the Ichthys field in northern Australia.
Awarded to the McDermott and Baker Hughes consortium in 2019 by INPEX Operations Australia P/L, the subsea infrastructure development project included engineering, procurement, construction and installation (EPCI) of umbilicals, risers and flowlines (URF), a subsea production system comprised of a new 7-inch vertical Christmas tree (VXT) system, all forming a subsea well gathering system (GS4) tied back to the existing Ichthys Explorer central processing facility.
The consortium’s scope of work also included an in-fill URF EPCI involving the development of new subsea wells tied in to the existing gathering systems, according to a separate news release.
“The McDermott and Baker Hughes partnership has been marked by resilience and adaptability, guided by our firm commitment to deliver for the INPEX-operated Ichthys LNG and Australia,” Swaminathan said. “Together, leveraging McDermott’s unique end-to-end EPCI capabilities and Baker Hughes’ subsea development solutions, we navigated project complexities and overcame the unique challenges posed by the pandemic. Our hard work paid off, and I would like to thank our teams in Perth, Batam, and beyond, whose collective efforts enabled the safe completion of this important work scope”.
“This milestone has been achieved through the successful partnership between Baker Hughes and McDermott to execute for INPEX,” Romain Chambault, Baker Hughes Senior Vice President for Subsea Projects and Services, said. “The amount of collaboration shown between the consortium has been truly unique and serves as an industry benchmark for the successful execution of large, complex EPCI subsea projects. Manufacturing the highly complex 7-inch VXT from our dedicated SP&S facility in Batam has expanded the global capability for Baker Hughes in the Asia Pacific region where we are well-positioned to support customers with a strong regional capability, complemented by a strong McDermott presence in Batam and the region as a whole”.
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